Employee may be stuck with costs

NICK CORCODILOS

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Question: Nine months ago I accepted a job that required a move from another state. I signed an agreement saying that if I were to leave before one year is up, I would reimburse the company for my moving expenses. Things are not working out, and I have an offer to join a company where I used to live. Are such agreements enforceable? I�m sure my next employer won�t wait three months for me to start. Any ideas?

Answer: Companies make new hires sign reimbursement agreements because they don�t want to lose their investment in the relocation. It�s a perfectly reasonable way for a company to protect itself. I would not test the employer�s willingness to take legal action against you, or to withhold the money from your last paycheck. If that�s your plan, talk with a lawyer before you act. I think you have two options:

� Swallow the moving cost and write it off as a learning experience, because ultimately it might cost you more to fight the agreement and to delay starting the new job. You might try to negotiate some sort of deal, say, a pro-rated reimbursement rather than the whole enchilada.

� Ask the new employer to cover your loss. They may be willing to do this if you�re completely up-front about it and explain that this is what it will take to get you to move now rather than in three months.

There are risks either way. It depends on both companies. You might inquire discreetly to learn whether your current employer has held employees accountable, but you risk word getting out that you�re considering leaving.

Bottom line: Decide what the worst case is, figure out what it�s going to cost you, and factor it into your budget.

If you can get one of the two companies to help out, great. But this is your problem, not either company�s. Don�t let it screw up your career or your life. (Remember that moving expenses can be tax-deductible, so you could recoup part of the loss.)

I wish you the best in your next job.

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